Presentation

Managerial Economics

on

Group Members
Kashmira Kambli Vishakha Shivalkar Yogita Bhoir Sushant Koparde Tushar Shelke Pradeep Pawar P 53 P 38 P 39 P 35 P 37 P 22

INTRODUCTION
Indian carpets are world famous.
Totally export-oriented.

 The industry has been doing well in this decade, crossing the 2000 crore mark each year. Last year the export performance in terms of value was 2300 crore rupees.

CASE STUDY

Export Market For Kashmiri Carpets

OUTLINE OF CASE STUDY

Kashmiri carpet Luxury Item
Competitors & Buyers Pricing strategy Q and A of Case study

USP of Kashmiri carpets

Mix of traditional and contemporary designs. Speak of high workmanship. Knots per square inch is high.

Aesthetic charm and durability.

COUNTRY WISE EXPORT

IN USD (millions) Country Iran China India Pakistan Nepal Turkey world 2007 547 365 378 126 203 101 2028 2008 520 346 341 122 122 97 1926 2009 647 249 351 217 140 98 1977

Source :www.dessenceconsulting.com

Carpet exports from india

Export in Rs Millions

MARKETS

PRODUCT ATTRIBUATES

STRATEGY
POSTAGE STAMP
Same price over Europe.
Disadvantage
Should be based on Incremental cost Subsidy Burden on Government

Contd.
MARGINAL COST PRICING.
Cover direct cost only Help to penetrate European market. Problem
Subsidy Burden on Government.

SWOT ANALYSIS
Strength Artistic Skill Cost Innovations Flexibility
Weakness Unorganized. Marketing Channels Port facilities Infrastructure. Professional approach Internal competition Intellectual property rights

SWOT
Opportunities
Home furnishing market for carpet modern design Demand growth through cost cutting Retail Giants

Threat
Chinese industry Unhealthy competition

RIVALS
Main rivals

Iran
China

ANALYSIS OF RIVALS
Iran Iran's carpet exports amounted to $635 million in 2007. People prefer to buy expensive Persian carpets rather than cheap Indian or Pakistani carpets in Europe & US. Avg. share of Iranian carpet in European market is 65%(Highest share)

CHINA
Important carpet producing country. Most of its carpets are exported. Demand for nylon carpet is growing. Low quality Carpet

China export

Contd.
Major export destinations of Chinese Carpets are: US Japan Germany UK

European Market Share (%)

MARKET DEMAND
Highly Elastic Demand
Price D

P1
P2 D

Q1

Q2

Quantity

MARKET STRUCTURE Oligopoly

Oligopoly is competition among few sellers. Firms are interdependent on eachothers.

CONCLUSION
Innovative range of products with lower volume is going to be success mantra for Indian Carpet Industry